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Wednesday 16 October 2013
Charleroi Man Admits Role in Stolen Credit Card SchemeRead the Press Release
PITTSBURGH - A Charleroi man has pleaded guilty in federal court to a charge of conspiracy, United States Attorney David J. Hickton announced today.
Jerome C. Pryor, Jr., 27, of Charleroi, Pa., pleaded guilty to one count before Senior United States District Judge Gustave Diamond.
In connection with the guilty plea, the court was advised that Pryor agreed with others to use stolen credit cards to purchase merchandise or to use at ATMs.
Judge Diamond scheduled the sentencing for Feb. 18, 2014. The law provides for a maximum total sentence of not more than five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Western Pennsylvania Financial Crimes Task Force (WPFCTF) conducted the investigation that led to the successful prosecution of Pryor. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Tuesday 15 October 2013
Somerset County Man Conspired to Distribute CocaineRead the Press Release
JOHNSTOWN, Pa. - A resident of Windber, Pa., pleaded guilty in federal court to a charge of conspiracy to distribute cocaine, United States Attorney David J. Hickton announced today.
Peter Donato, 30, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that from Nov. 2011 to July 18, 2012, Donato conspired to distribute 500 grams or more of cocaine.
Judge Gibson scheduled sentencing for Feb. 13, 2014, at 11 a.m. The law provides for a total sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Pending sentencing, the court continued Donato on bond.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Safe Streets Task Force initiative comprised of the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pa. Attorney General's Office, the Blair County Drug Task Force, the Cambria County Drug Task Force, the Somerset County Drug Task Force, the Roaring Spring Borough Police Dept. and the Paint Township Police Dept. conducted the investigation that led to the prosecution of Donato.
Six Charged in Heroin Trafficking RingRead the Press Release
JOHNSTOWN, Pa. - Six residents of Cambria and Indiana Counties were indicted by a federal grand jury in Johnstown on Oct. 8, 2013, on charges of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
The seven-count indictment named as defendants the following individuals:
Thomas K. Lighthill, 44, of Northern Cambria, Pa.;
Deborah L. Lute, 34, of Carrolltown, Pa.;
Douglas A. Lydic, 29, of Commodore, Pa.;
Tiffany N. White, 24, of Indiana, Pa.;
William S. Rounsley, 21, of Carrolltown, Pa.; and
Casey Lex, 28, of Northern Cambria, Pa.According to the indictment presented to the court, from April 2012 to March 8, 2013, the defendants conspired to distribute more than 100 grams of heroin, and on separate occasions during that time period Lydic, White, Rounsley and Lex each distributed less than 100 grams of heroin. In addition, on March 8, 2013, Lute and Rounsley possessed less than 100 grams of heroin with the intent to distribute it, and Lute possessed two Hi-Point pistols in furtherance of the drug trafficking.
The law provides for a maximum total sentence for Lighthill of 40 years in prison, a fine of $5,000,000 or both; for Lute of life in prison, a fine of $6,250,000 or both; for Lydic, White and Lex of 60 years in prison, a fine of $6,000,000, or both; and for Rounsley of 80 years in prison, a fine of $7,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Lighthill, Lute, Lydic, White, Rounsley and Lex.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Removed Alien Charged with Illegally Returning to United StatesRead the Press Release
PITTSBURGH - An alien found in Pittsburgh has been indicted by a federal grand jury on a charge of illegal re-entry after deportation, United States Attorney David J. Hickton announced today.
The one-count indictment named Jose Mariano Perez-Flores, 33, of Honduras, as the sole defendant.
According to the indictment presented to the court, Jose Mariano Perez-Flores, an alien, was formally removed from the United States by United States Immigration and Customs Enforcement on Aug. 17, 2007. Jose Mariano Perez-Flores was found to be illegally present in Pittsburgh, Pennsylvania, on Sept. 20, 2013.
The law provides for a maximum total sentence of 2 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul E. Hull is prosecuting this case on behalf of the government.
The U.S. Department of Homeland Security, Immigration and Custom Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Peptides Distributor Sentenced to Probation, Community ServiceRead the Press Release
PITTSBURGH - A resident of Palatine, Illinois, has been sentenced in federal court to three years probation and 100 hours of community service on his conviction of mail fraud, misbranding of drugs and money laundering, United States Attorney David J. Hickton announced today.
Senior United States District Judge Donetta W. Ambrose imposed the sentence on Adam F. Higdon, 41.
According to information presented to the court, Higdon maintained two websites for the illegal distribution of peptides - chemical compounds which require a prescription for dispensation, but which are illegitimately sought by body-builders for muscle enhancement. Higdon deceived the Internet service provider and the FDA by falsely representing on the websites that he was selling these substances "for research use only . . . not for human consumption." During the period from January 2010 until January 2011, Higdon allegedly paid $131,472.50 to acquire the substances from suppliers in the Peoples Republic of China; and he thereafter sold the peptides for $397,662.00.
Prior to imposing sentence, Judge Ambrose stated that she believed Mr. Higdon was sincere in his remorse and would not endanger the public in the future.
Assistant United States Attorney Leo M. Dillon prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the FDA Office of Criminal Investigations, IRS - Criminal Investigation and the DEA for the investigation leading to the successful prosecution of Higdon.
Mercer County Teen Charged with Federal Drug and Gun OffensesRead the Press Release
PITTSBURGH - A resident of Western Pennsylvania has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
The two-count indictment named Jashaad Coleman, 19, of Farrell, Pa.
According to the indictment, on or about July 31, 2012, Coleman aided and abetted the possession with the intent to distribute 28 grams or more of a mixture and substance containing a detectable amount of cocaine base, in the form commonly known as crack, a Schedule II controlled substance. The indictment further charges that he possessed, brandished and discharged a firearm in furtherance of that drug trafficking crime.
The law provides for a maximum total sentence of not less than 15 years and up to life in prison, a fine of up to $5,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric S. Rosen is prosecuting this case on behalf of the government.
The Pennsylvania State Police, the Southwest Mercer County Regional Police, the Mercer County District Attorney's Office, and the Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Massachusetts Resident Sentenced for Using Counterfeit Traveler's ChecksRead the Press Release
CONCORD, N.H. James Jones, 49, of Dorchester, Massachusetts, was sentenced in United States District Court for the District of New Hampshire to uttering and possessing counterfeit securities, announced United States Attorney John P. Kacavas.
On June 25, 2009, Jones attempted to use a counterfeit $100 American Express Traveler’s Check to buy a sandwich at a grocery store in Salem, New Hampshire. The cashier who received the check reported the matter to his supervisor. As the supervisor examined the check, Jones left the store and was arrested in the store’s parking lot by a Salem police officer.
After Jones was transported to the Salem Police Department, he admitted to a police officer and a Special Agent for the United States Secret Service that the check was counterfeit.
Jones was sentenced to time served and two years of supervised release.
The case was investigated by the Salem Police Department and the United States Secret Service and prosecuted by Assistant United States Attorney Robert Kinsella.
Man Pleads Guilty in Washington County Land Fraud CaseRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, pleaded guilty in federal court to one count of mail fraud, United States Attorney David J. Hickton announced today.
Derek A. Candelore, aka Dan Kun and Kevin Kelly, pleaded guilty before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that Candelore was employed by Penn Star Energy, LLC of Butler County (Penn Star) as a landman. Candelore worked at Penn Star with William Ray, who was another landman who previously pleaded guilty to related charges. A landman contacts mineral rights owners on behalf of natural gas production companies to arrange for leases of mineral interests for oil and gas production. Penn Star arranged for mineral rights leases on behalf of Range Resources Corporation. The mineral rights for four separate blocks of land in Washington County consisting of one hundred or more acres were stolen by Candelore using forged signatures, fake companies and forged notary signatures and stamps. These frauds began in February 2010 and ended in June 2012. During the scheme Candelore set up several post office boxes and bank accounts in the names of companies he created. He hired others to file deeds and other documents at the Washington County Recorder of Deeds Offices to make it appear that the true mineral rights owners had transferred their mineral rights to Candelore's fake companies. These deeds had forged signatures of several true owners and forged notary signatures and stamps. Candelore's companies thereafter leased and/or sold the mineral rights to others. Candelore used the names of Dan Kun and Kevin Kelly to shield his involvement in the fraud. The indictment seeks the forfeiture of $1,856,998.27 of proceeds from the scheme. Candelore received the proceeds from each of the four blocks of mineral rights, while Ray received proceeds from two of the four. The victims include Range Resources Corporation, several mineral rights owners, Pecos Bend Royalties, LP, of Midland, Texas, and Buffalo Royalties business entities in Texas. The schemes were discovered when a mineral rights owner discovered that her rights had been sold to Clark Lumber Company, a shell company owned by Candelore.
Judge Schwab scheduled sentencing for Jan. 31, 2014. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the and the criminal history, if any, of the defendant.
Pending sentencing, the court continued Candelore on bond.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government. The U.S. Postal Inspection Service conducted the investigation that led to the prosecution of Candelore.
Local Man Sentenced to Incarceration for Falsifying Federal Firearms FormsRead the Press Release
PITTSBURGH - A Pittsburgh man has been sentenced in federal court to six months incarceration at a community confinement center, followed by three years of supervised release, on his conviction of violating federal firearms laws, United States Attorney David J. Hickton announced today.
Senior United States District Judge Donetta W. Ambrose imposed the sentence on Charles Douglas Warner, 27.
According to information presented to the court, on or about July 19, 2009, and on or about October 9, 2009, Warner made false statements to a federal firearms licensee in connection with his purchase of two firearms. In addition, on those dates, Warner was a fugitive from justice, had pending felony drug and firearms charges, and was an unlawful user or addicted to controlled substances when he possessed those firearms.
Assistant United States Attorney Troy Rivetti prosecuted this case on behalf of the government. This case is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Charles Douglas Warner.
Laurel Man Enters Guilty Plea in Environmental CaseRead the Press Release
Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Patrick Henry Procino, age sixty-six, of Laurel, Delaware, pled guilty today before United States District Court Judge Richard G. Andrews to one count of illegal storage of hazardous waste without a permit, punishable by five years incarceration, a $250,000 fine, and three years supervised release. As the owner/operator of Procino Plating, Inc., Patrick Procino also entered a guilty plea on behalf of that corporation to one count of violating the Clean Water Act, which subjects the corporation to a maximum fine of $500,000 and five years probation.
According to statements made at the plea hearing and documents filed in court, Patrick Procino owned and operated Procino Plating, Inc. (Athe facility@), at 901 South Market Street in Blades, Delaware. Until the fall of 2007, the facility was utilized for plating and electroplating-related operations.
The Resource Conservation and Recovery Act (RCRA) defines hazardous waste to include chemical waste which due to its chemical characteristics presents a hazard to human health or the environment. RCRA mandates that producers of hazardous wastes may not store such wastes without first obtaining a storage permit from the Environmental Protection Agency (EPA).From December 2007 through May 2010, Patrick Procino stored a tank containing approximately 450 gallons of liquid hazardous waste which originally had been used at the facility on its decorative chrome plating line. This chemical waste had a ph of 0.8 and, therefore, was a corrosive waste under RCRA.
As to Procino Plating, Inc. (Procino Plating), in the course of its operations it produced wastewater, and pursuant to a pretreatment industrial wastewater permit issued by Sussex County, Procino Plating was permitted to discharge its industrial wastewater to the Seaford, Delaware treatment plant which, in turn, discharges into the Nanticoke River. Pursuant to the Clean Water Act, the permit set limits on the amount of various pollutants that Procino Plating could discharge in its industrial waste water to the Seaford treatment plant, including limits on various metals.
On or about June 1, 2009, Sussex County modified Procino Plating=s industrial user permit to specifically prohibit the discharge of waste water generated as a result of electroplating operations, and any waste or bi-products of the electroplating processes then in storage at the facility. This modification was made based upon statements and representations by Procino Plating to Sussex County officials, indicating that the business has ceased electroplating-related operations at the facility. However, from June 2009 through March 2010, Procino Plating processed, through its wastewater treatment plant, stored drums of chemicals which were leftover from its former electroplating operations and, in violation of its Clean Water Act mandated permit, discharged resulting wastewater to the Seaford treatment plant.
United States District Court Judge Richard G. Andrews scheduled sentencing for February 27, 2014.
Following the guilty plea, Charles M. Oberly, III, United States Attorney for the District of Delaware, stated, AMy office will continue to prioritize the investigation and prosecution of those environmental offenses which present a present or potential hazard to human health or the environment.@
"For years the defendant knowingly disregarded federal and state environmental laws,” said David G. McLeod, Jr., Special Agent in Charge of EPA's criminal enforcement program for the Middle Atlantic States. "Improperly handling hazardous wastes and industrial pollutants can threaten the environment and put the public at serious risk. Today's guilty plea demonstrates our resolve to collaborate with our state and federal counterparts to vigorously investigate and prosecute any credible allegation that a company and its leaders treat our nation's environmental laws with contempt.”
“This case is another example of effective partnership between Delaware, EPA and the U.S. Attorney's Office to protect public health and the environment,” said DNREC Secretary Collin O=Mara. ADelaware companies demonstrate every day that they can be successful while complying with environmental standards, and DNREC works hard to assist the state's smaller businesses to achieve these goals. However, we have no tolerance for those who continually demonstrate a blatant disregard for the state’s hazardous waste regulations. We appreciate the great efforts of the U.S. Attorney’s Office and EPA in this matter.This case was investigated by the Environmental Protection Agency, Criminal Investigation Division, and the Department of Natural Resources and Environmental Control-Criminal Investigations. This case was prosecuted by Assistant United States Attorney Edmond Falgowski and Special Assistant United States Attorney Joseph Lisa.
Judges Sentences Man to Probation for Stealing His Deceased Mother-in-Law's Social Security BenefitsRead the Press Release
PITTSBURGH – A Pittsburgh resident was sentenced in federal court to five years probation on his conviction of theft of government property, United States Attorney David J. Hickton announced today.
Senior United States District Court Judge Donetta W. Ambrose imposed sentence upon Melvin P. McMillan, 67.
According to information presented to the court, McMillan received and used the Social Security Title II benefits that continued to be issued to his mother-in-law, Pauline Kasenic, after her death on Oct. 24, 1994. From November 3, 1994 to June 1, 2012, McMillan received $224,370.00 in Social Security Administration funds to which benefits he knew he was not entitled.
Prior to imposing sentence, Judge Ambrose took into consideration the defendant's lack of criminal history, his acceptance of responsibility and his military service.
Assistant United States Attorney Mary McKeen Houghton prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Special Agents of the Social Security Administration, Office of Inspector General, who conducted the investigation that led to the successful prosecution of McMillan.
Johnstown Woman Facing Federal Drug ChargesRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown was indicted on Oct. 8, 2013, by a federal grand jury in Johnstown on charges of violating various federal narcotics laws, United States Attorney David J. Hickton announced today.
The two-count indictment named Rukiya R. Smith, 34.
According to the indictment, Smith distributed less than 28 grams of cocaine base, commonly known as "crack," and less than 100 grams of heroin on March 5, 2013, and she possessed less than 100 grams of heroin on April 24, 2013, with the intent to distribute it.
The law provides for a maximum total sentence of 40 years in prison, a fine of $2,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Homestead Man Charged with Illegally Possessing Firearms and AmmunitionRead the Press Release
PITTSBURGH - A resident of Homestead, Pa., has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.
The one-count superseding indictment named Andre Dwayne Ruffin, 38.
According to the superseding indictment, on or about April 22, 2013, Ruffin, who has prior felony convictions, including violent felony offenses, possessed two firearms and ammunition. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
The law provides for a maximum total sentence for the offense of not less than 15 years and up to life in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jonathan B. Ortiz is prosecuting this case on behalf of the government.
This case is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the West Mifflin Police Department and the Allegheny County Police, Homicide Section conducted the investigation leading to the superseding indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Oakdale Resident Facing Fraud ChargesRead the Press Release
PITTSBURGH - A former resident of Allegheny County has been indicted by a federal grand jury in Pittsburgh on charges of mail fraud, United States Attorney David J. Hickton announced today.
The seven-count indictment named Jason Sheppard, 32, as the sole defendant.
According to the indictment, Sheppard was doing business as Synergy Real Estate Solutions, which claimed to provide title insurance, settlement services, lead generation, and referral services to companies in the real estate industry, including appraisers. Sheppard generated a website which made it appear that Synergy had partnered with a variety of financial institutions, and then sent email solicitations to licensed appraisers claiming that Synergy had requests for appraisal orders. The email claimed that all the appraisers had to do was complete an appraiser application and pay a fee to Synergy and then they would be considered approved vendors and would receive a list of appraisal requests in their area. After receiving payment from the appraisers, Sheppard did not provide any of Synergy's advertised services, and he used the money to further the fraud scheme and to support his lifestyle.
The law provides for a maximum total sentence of 140 years in prison, a fine of $1,750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former East Hills Man Charged with Drug and Gun Law ViolationsRead the Press Release
PITTSBURGH - A resident of Allegheny County has been indicted by a federal grand jury in Pittsburgh on charges of conspiracy to distribute 100 grams of more of heroin, attempt to possess with the intent to distribute heroin, and carrying, using, and discharging a firearm in relation to a drug trafficking crime and possession of a firearm in furtherance of a drug trafficking crime, United States Attorney David J. Hickton announced today.
The three-count second Superseding Indictment named Lamiere Thompson, 20, as the sole defendant.
According to the Second Superseding Indictment, from September 2011 to December 2011, Thompson conspired to distribute 100 grams or more of heroin. The second Superseding Indictment also charges that on or about Nov. 13, 2011, Thompson attempted to possess, with the intent to distribute, heroin, as well as used a firearm in furtherance of a drug trafficking crime.
The law provides for a maximum total sentence of not less than 15 years and up to life in prison, a fine of $6,250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Greater Pittsburgh Safe Streets Task Force consisting of Pittsburgh Bureau of Police, Allegheny County Sheriff's Office, Wilkinsburg Police Department, Allegheny County Police Department, Oakdale Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the Federal Bureau of Investigation conducted the investigation leading to the second Superseding Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Army Officer Sentenced for Criminal Conflict of InterestRead the Press Release
A retired Lieutenant Colonel in the U.S. Army who served in Iraq as a contracting officer was sentenced in U.S. District Court in Tacoma on October 15, 2013 for criminal conflict of interest, announced U.S. Attorney Jenny A. Durkan. HAROLD L. BROEK, 49, served as Chief of Contracting at the Tikrit Regional Contracting Center in Tikrit, Iraq, and admitted in his plea agreement that he used his position of authority to benefit himself to the detriment of the United States. BROEK established a company, Global Motion, that received contracts from an Iraqi company to which he had awarded contracts. U.S. District Judge Benjamin H. Settle sentenced BROEK to three years of probation, with 60 days of home detention, 40 hours of community service and $52,400 in restitution. BROEK pleaded guilty July 23, 2013.
According to the records filed in the case, BROEK used his position of authority in the U.S. Army, his knowledge of government contracting, and his relationship with Rohit Goel and “Avalon International Limited” to contract with Goel and Avalon on government contracts. Before BROEK left Iraq in 2007, he directed his family in Washington State to form a company, Global Motion, for the purpose of receiving contracts from Goel and Avalon. While in Iraq, BROEK had entered into an illegal agreement with Goel whereby Goel would send certain government contracts, awarded by the United States to Goel and Avalon, to the new company formed by BROEK and his family. Pursuant to this arrangement, Goel agreed to award government contracts to BROEK’s new company, to pay BROEK’s new company 30% of the profit on such contracts, and to front necessary funds or finance any contract expenditures BROEK’s company would incur in purchasing goods to perform under the contracts.
Before leaving Iraq and returning to the United States, BROEK participated in awarding contracts to Avalon. Specifically, in July 2007, shortly before he left Iraq to return to Lacey, Washington, BROEK signed a waiver shortening the deadline on a contract for the purchase and delivery of line-of-sight radios. By shortening the deadline, BROEK decreased the chances that Avalon’s competitors might win the contract. Later in July 2007, one of BROEK’s subordinates in Iraq awarded a contract for line-of-sight radios, valued at $162,151, to Goel and Avalon. Goel, in turn, awarded the contract for line-of-sight radios to BROEK’s company, Global Motion.
In September 2007, Avalon fronted $99,978 to Global Motion to finance the purchase of the line-of-sight radios. To fill the line-of-sight radio contract, Global Motion spent $58,733 to purchase the radios and have them shipped to Iraq. Global Motion retained the balance of the funds from Avalon, making a profit of $29,871.90 on this deal.
According to tax returns, Global Motion made a profit in 2007 and 2008 of $52,400.16. Pursuant to the plea agreement, BROEK will make restitution payments to the United States in the amount of $52,400.16.
In sentencing documents, the United States argued that “it was clear that LTC Broek used his position and authority to enter into a business relationship with Avalon. Only LTC Broek had the contact with, experience with, and relationship with Rohit Goel to start or suggest a new business relationship. We also know that LTC Broek participated personally and substantially in his capacity as an Army Officer in at least one contract ultimately awarded to his family’s company, Global Motion. The many other contracts directed to Global Motion by Avalon, though awarded and directed after Broek left Iraq, also stink of fraud, corruption, and conflict. One has to ask why, and under what circumstances, a foreign contractor like Avalon would contract with Global Motion, a newly-formed company that had zero experience in contracting? In fact, the only reason Avalon contracted with Global Motion was because of LTC Broek.”
The case was investigated by the Special Inspector General for Iraq Reconstruction, Federal Bureau of Investigation, and Defense Criminal Investigative Service. The case was prosecuted by Assistant United States Attorneys David Reese Jennings and Marc Perez.
Deported Honduran Charged with Re-entering U.S. IllegallyRead the Press Release
PITTSBURGH - An alien found in Pittsburgh has been indicted by a federal grand jury on a charge of illegal re-entry after deportation, United States Attorney David J. Hickton announced today.
The one-count indictment named Pastor Gomez-Perez, 32, of Honduras, as the sole defendant.
According to the indictment presented to the court, Pastor Gomez-Perez, an alien, was formally removed from the United States by United States Immigration and Customs Enforcement on July 28, 2009. Pastor Gomez-Perez was found to be illegally present in Pittsburgh, Pennsylvania, on September 20, 2013.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul E. Hull is prosecuting this case on behalf of the government.
The U.S. Department of Homeland Security, Immigration and Custom Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Acting Post Office Head Misappropriated Funds, Stole from MailRead the Press Release
PITTSBURGH – A resident of Fayette County, Pa., pleaded guilty in federal court to charges of misappropriation of postal funds and theft of mail by a postal officer and employee, United States Attorney David J. Hickton announced today.
Jennifer M. Soltis, 38, of Smock, Pa., pleaded guilty to two felony counts before Senior United States District Court Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that from Oct. 8, 2012 to Jan. 9, 2013, Soltis, while employed as the Acting Officer in Charge with the United States Postal Service at the Smock, Pa., post office, converted to her own use, postal money orders, stamps and cash having a total value of $5,729.65. On Dec. 9, 2012, Soltis also embezzeled a Wal-Mart gift card from an item of mail.
Judge Ambrose scheduled sentencing for March 26, 2013, at 2:00 P.M. The law provides for a maximum total sentence of 15 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentence, the court released Soltis on bond.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The United States Postal Service, Office of Inspector General, conducted the investigation that lead to the prosecution of Soltis.
Monday 14 October 2013
Statement of U.S. Attorney Preet Bharara on the Transfer of Anas Al Liby to the Southern District of New YorkRead the Press Release
“Anas al Liby was transferred to law enforcement custody this weekend and was brought directly to the Southern District of New York where he has been under indictment for more than a decade. The Government expects that he will be presented before a judicial officer tomorrow.”
Saturday 12 October 2013
Jacksonville Man Arrested for Recent Attacks on Power GridRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; and James Hendricks, Acting Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI); announced today that Jason Woodring, age 37, of Jacksonville, Arkansas, was arrested on a Criminal Complaint charging him with destruction of an energy facility.
The Affidavit filed with the Complaint alleges that Woodring is responsible for multiple acts of sabotage to the power grid in Central Arkansas. Yesterday, Lonoke County Sheriff’s Office deputies received multiple calls regarding an explosion on John Shelton Road in Jacksonville, Arkansas. Deputies and Entergy employees determined the explosion occurred under power lines near Woodring’s residence. Agents from the FBI and Joint Terrorism Task Force called to the scene, observed a type of blue hose similar to evidence found at another power grid sabotage scene. Interviews were conducted and information from these interviews was connected to previous power grid attacks resulting in the arrest of Woodring today. It is anticipated that an initial appearance in federal court will be scheduled for Tuesday.
“The citizens of Central Arkansas can rest a bit easier today with the arrest of Jason Woodring,” stated Thyer. “The power grid attacks had the potential to put many lives at risk. When we depend on electrical power not only for comfort and convenience, but also for safety, security and life-sustaining equipment, not knowing where the next attack would occur held the public hostage to an unknown attacker. I am extremely grateful to all the investigators from the FBI, Joint Terrorism Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives, Union Pacific Police, Entergy, First Electric, Lonoke County Sheriff’s Office, Cabot Police, Arkansas State Police, Conway Police Department, Little Rock Police Department and Arkansas Game and Fish Commission for their commitment to this investigation these past few months.”
"I am so proud of the collective team effort of all those who worked so diligently in investigating the attacks on our power grid," stated James Hendricks, Acting SAC for the FBI's Little Rock Office. "This dedicated team worked tirelessly to resolve this matter before anyone was hurt, for which we should all be especially thankful."
The power grid investigation began on August 21, 2013, with the sabotage of a high voltage power line support tower. Investigation of the 100-foot tower revealed that a shackle which holds a 500,000 volt power line was severed. Additionally, over 100 bolts securing the support tower had been removed leaving only five bolts to hold the tower and the power lines it carried in place. Due to the cut shackle, a power line fell on a nearby railroad track and was later struck by a passing train severing the power line causing a brief power outage in Cabot, Arkansas. Entergy was able to reroute power to mitigate the affect this outage had on its customers. Blue hose similar to that found at and near Woodring’s residence was found around this sabotage site.
A second attack on the power grid occurred September 29, 2013, at an Entergy Extremely High Voltage (EHV) switching station in Scott, Arkansas. According to the Affidavit, local authorities responding to notification that alarms were indicating multiple problems at the station found the EHV station on fire. A message in black marker at the entrance to the station read, “You should have expected U.S.” Entergy representatives estimate the damage to the switching station to be over two million dollars.
On October 6, 2013, a third incident was reported by First Electric Cooperative (FEC) which experienced a power outage in Jacksonville, Arkansas. This outage caused the loss of power to approximately 9,000 customers. An investigation by FEC and the FBI revealed two power poles had been cut and one pulled down causing the downing of a 115,000-volt transmission line. The tractor allegedly used to pull down the pole was stolen from a location directly across the street from Jason Woodring’s residence.
This investigation was conducted by the FBI, Joint Terrorism Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives, Union Pacific Police, Entergy, First Electric, Lonoke County Sheriff’s Office, Cabot Police, Arkansas State Police, Conway Police Department, Little Rock Police Department and Arkansas Game and Fish Commission. Assistant United States Attorney Michael Gordon is prosecuting this case for the United States.
The charges set forth in a Complaint are merely allegations. A federal Grand Jury will decide whether to indict on these charges. If indicted and convicted of this charge, Woodring faces a possible sentence of not more than 20 years imprisonment and/or a $250,000 fine followed by three years supervised release. Woodring is presumed innocent until proven guilty.
Claremont Woman Pleads Guilty to Wire FraudRead the Press Release
CONCORD, N.H. – Bonnie Johnson, 45, of Claremont, New Hampshire, entered a guilty plea in the United States District Court for the District of New Hampshire for fraudulently procuring more than $600,000 in funds from her employer, announced United States Attorney John P. Kacavas.
For more than two decades, Johnson was employed by the North Country Smokehouse in Claremont, New Hampshire, as an administrative assistant. In addition to her administrative responsibilities, Johnson had access to the company’s bank account and American Express corporate credit card, and was authorized to use those accounts and credit lines for business purposes in cases of financial exigency. Between July 1, 2005, and April 30, 2013, Johnson engaged in a scheme to fraudulently obtain money from North Country Smokehouse. To accomplish and carry out the scheme, Johnson fraudulently endorsed company checks made payable to herself, which she then deposited directly into her personal bank account. The funds, totaling $606,011.77 over the course of approximately eight years, were subsequently used by Johnson for various personal expenditures.
Johnson faces a maximum sentence of twenty years in prison and criminal fines of up to $250,000. Johnson will be released pending sentencing, which is presently scheduled for January 16, 2013.
Johnson’s prosecution arose from an investigation by the Claremont Police Department, the Internal Revenue Service’s Criminal Investigation office in Manchester, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Nick Abramson.
Friday 11 October 2013
U.S. Attorney John Walsh Issues Statement About Conviction of War Criminal "John Doe" Following Week Long Jury TrialRead the Press Release
“After a comprehensive investigation and an emotional jury trial, John Doe, a/k/a Kefelegn Alemu Worku, has been convicted of identity theft and lying to the United States government to gain entry and ultimately become a naturalized citizen. As the United States proved at trial, the defendant was in fact a war criminal, responsible for the persecution, torture and murder of defenseless people in the late 1970s in Ethiopia during the “Red Terror.” At trial, the United States presented as witnesses several of the victims the defendant had personally tortured. Their testimony was chilling, as was the fact that the defendant at trial sat with his back turned to them as they testified, until ordered by the Court to turn around so that his victims could identify him.
“Although no order of a U.S. Court can undo the crimes perpetrated by the defendant in Ethiopia, this trial offered Alemu Worku’s victims the opportunity to speak the truth bravely for all to hear and to see that a measure of justice would be done, at long last. As a result of defendant’s conviction, U.S. District Court Judge John L. Kane today immediately stripped Alemu Worku of his unlawfully obtained citizenship.
“I would like to recognize the outstanding work of Homeland Security Investigations Special Agent Jeff Lembke, Special Assistant U.S. Attorney Lily Alves, and lead prosecutor Assistant U.S. Attorney Brenda Taylor, who worked diligently and with great purpose and skill. In the end, their efforts and the courage of the victims who testified have ensured that Alemu Worku is no longer was able to hide ‘in plain sight’.”
John Walsh
United States Attorney, District of Colorado####
St. Tammany Coroner, Peter Galvan, Charged with Conspiracy to Steal Funds from Coroner’s OfficeRead the Press Release
PETER GALVAN, 54, a resident of St. Tammany Parish, and the elected St. Tammany Parish Coroner, was charged today in a bill of information with conspiring with two other individuals to steal money from the St. Tammany Coroner’s Office, announced U. S. Attorney Kenneth Allen Polite, Jr.
The bill of information charges that as an elected official, GALVAN did not earn annual or sick leave. However, with the assistance of another coroner’s office employee, GALVAN received yearly payments for unused annual and sick leave, totaling $111,376 over a five year period.
GALVAN, as a physician, individually contracted with the City of Slidell, Louisiana to provide medical services for inmates of the Slidell City Jail. The contract was not with the St. Tammany Parish Coroner’s Office, but with GALVAN personally. However, GALVAN conspired with another individual employed with the St. Tammany Parish Coroner’s Office to service this contract while the other individual was supposed to be working for and was being paid by the St. Tammany Parish Coroner’s Office. The Bill of Information charges that the Coroner’s Office employee was paid at least $50,000 in public funds to fulfill GALVAN’s personal contract.
Additionally, GALVAN conspired with an employee of the coroner’s office to purchase a $9,170 generator for GALVAN’s personal vessel, a life raft and life jackets for his personal vessel valued at $4,841, and a Global Positioning Satellite for his personal use valued at $2,395, all with St. Tammany Parish Coroner’s Office funds.
Finally, the Bill of Information alleges that GALVAN used his St. Tammany Parish Coroner’s Office credit card to make purchases of meals and other personal items with his public credit card totaling $15,606 which were unrelated to the office’s business.
If he is convicted, GALVAN faces a statutory maximum of five years in jail, a $250,000 fine and restitution.
U.S. Attorney Kenneth Allen Polite, Jr. reiterated that a Bill of Information is simply an allegation and that Dr. GALVAN is presumed to be innocent and he noted the investigation of the operation and personnel employed by the St. Tammany Coroner’s Office is continuing.
The case was investigated by the Federal Bureau of Investigation, Internal Revenue Service, Criminal Investigation Division, and the State of Louisiana Legislative Auditor. The case is being prosecuted by Assistant United States Attorneys Carter K. D. Guice, Jr. and Chandra Menon.
(Download Bill of Information )
Nooksack Tribal Member Sentenced to 23+Years in Prison for Ax MurderRead the Press Release
An enrolled member of the Nooksack Tribe was sentenced October 11, 2013 in U.S. District Court in Seattle to 280 months (23+ years) in prison for second degree murder, announced U.S. Attorney Jenny A. Durkan. LEVI EUGENE CHARLES, 26, admitted that he killed Sauk-Suiattle Tribal member Kenneth Joseph by striking him in the head and face with an ax. The murder occurred when 68-year-old Joseph awoke while CHARLES was burglarizing Joseph’s home on the Lummi reservation. Charles pleaded guilty on June 6, 2013. U.S. District Judge Richard A. Jones imposed five years of supervised release following the 23+ year prison term.
According to the plea agreement, CHARLES went to Joseph’s home the night of October 23, 2012. CHARLES knew Joseph and had been in the home. He admits he planned to break in and steal items to sell for cash. CHARLES picked up a miniature baseball bat outside the residence and carried it inside. Joseph heard the intruder and confronted him. CHARLES hit Joseph with the mini baseball bat multiple times and then grabbed an ax from near the front door of the house and hit the victim with that in the head and face. After killing Joseph, CHARLES threw a blanket over the body and hung blankets over the windows to conceal the crime scene. CHARLES stole an ATM card from Joseph’s wallet, and took a TV and other items from the house. CHARLES threw the small bat away in the woods and discarded the TV and other items at the end of the driveway. He used the ATM card a few hours later to take $420 from Joseph’s bank account.
CHARLES was arrested October 29, 2012 and was indicted December 19, 2012.
The case was investigated by the Lummi Police Department and the FBI. The case was prosecuted by Assistant United States Attorney Todd Greenberg.
Jerome Woman Indicted for Mail FraudRead the Press Release
BOISE — Celia Perez, 40, of Jerome, Idaho, turned herself in to federal authorities today on mail fraud charges, U.S. Attorney Wendy J. Olson announced. On October 8, 2013, a federal grand jury in Boise indicted Perez on the charges. An arraignment date has not been set.
The indictment charges Perez with devising a scheme to defraud victims by obtaining money by materially false and fraudulent pretenses through the use of the U.S. Postal Service. The indictment alleges Perez represented herself as an immigration attorney, and purported to assist aliens with filing immigration paperwork. Perez allegedly accepted money from the victims for fraudulent services, and fines and fees purportedly owed to the U.S. Government. As part of the scheme to defraud, Perez allegedly created fraudulent invoices for the fines and fees, and then had the victims mail their payments to her through the U.S. Postal Service. The indictment alleges Perez did not file any immigration petitions on behalf of the victims, and that she obtained approximately $30,000 from the victims as a result of the fraud scheme.
Mail fraud is punishable by up to 20 years in prison, a maximum fine of $250,000, and up to three years of supervised release.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Postal Inspection Service, and U.S. Citizenship and Immigration Services (USCIS).
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Glen Carbon Man Sentenced for Receipt and Possession of Visual Depictions of Minors Engaged in Sexually Explicit ConductRead the Press Release
Arlynn Gene Georgeson, 54, of Glen Carbon, Il, was sentenced today after pleading guilty to an Information on June 17, 2013, charging, in Count 1, Receipt of Visual Depictions of Minors Engaged in Sexually Explicit Conduct; and, in Count 2, Possession of Visual Depictions of Minors Engaged in Sexually Explicit Conduct; the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Georgeson was sentenced to 97 months’ imprisonment on both counts, to run concurrently; 5 years’ supervised release on each count, also to run concurrently; and ordered to pay a special assessment of $200. The Court waived the fine. Georgeson was also ordered to pay, by consent of the parties, $1,000 in restitution to one of the victims portrayed in the images of child pornography in his possession. The Court also ordered that the computer used to commit the charged offenses be forfeited. Finally, upon his release from prison, Georgeson must register as a sex offender as a condition of his supervised release.
Evidence presented at sentencing was that, on September 27, 2011, during an undercover operation, two FBI agents in separate states were both able to download images of minors engaged in sexually explicit conduct from a computer that was later linked to the defendant. Both offices forwarded this information to the FBI’s Springfield Child Exploitation Task Force located in its Fairview Heights Office. Members of the task force subsequently obtained a search warrant for the defendant’s residence in Glen Carbon, Illinois.
One of the items seized during the execution of the search warrant was a Dell Studio Laptop Computer, Model 1555. A forensic examination of the Dell laptop revealed approximately 16,282 images and 512 videos of minors engaged in sexually explicit conduct. The majority of the images and/or videos of minors engaged in sexually explicit conduct that the defendant possessed were of minors between the age of 2 and 12. There were also images on the laptop of toddlers between the age of 2 and 5 being orally, vaginally, or anally penetrated, as well as images of bondage involving minors. Georgeson later admitted to law enforcement officers that he was the primary user of the laptop, and that he put the images of minors engaged in sexually explicit conduct on the computer (Count 2). The examination also revealed that several of the images of the minors engaged in sexually explicit conduct had been downloaded by the defendant, using a file sharing program, on December 28, 2011 (Count 1).
During the search of his residence, Georgeson agreed to provide a voluntary statement to law enforcement officers. Georgeson stated that he was the sole user of the file sharing program found on the Dell Studio laptop, and that he initially used the program to download music. Georgeson stated that he began to see images of minors engaged in sexually explicit conduct in some of the downloads, and subsequently started searching for such image and/or video files. Georgeson said that he viewed the “younger” images and that gender was not an issue for him. He described “younger” as being a prepubescent with no hip or breast development. He also admitted having some images involving infants saved to his laptop computer. Finally, Georgeson admitted saving the images and videos of minors engaged in sexually explicit conduct to the laptop computer, stating that he used the images for personal gratification and “research,” and that he downloaded the images and/or videos while his wife was at work.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the FBI’s New Orleans Office and the FBI’s Springfield Child Exploitation Task Force. The case was assigned to Assistant United States Attorney Angela Scott.
Foreign National Sentenced on Firearm, Immigration OffensesRead the Press Release
Antonio Rea-Fabela, age 36, a citizen of Mexico who most recently resided in St. Louis, MO, was sentenced on October 11, 2013, to ten months in federal prison, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Rea-Fabela had entered pleas of guilty on May 28, 2013, to Possession of a Firearm by an Illegal Alien; and Entry into the United States Without Inspection. In addition to the term of imprisonment, the Court ordered the forfeiture to the United States of the firearm possessed by the defendant. The Court also entered a Judicial Order of Removal, which requires that Rea-Fabela be deported from the United States following his term of imprisonment.
Evidence in support of the indictment in this case was obtained in an investigation which was the U.S. Immigration and Customs Enforcement Office of Homeland Security Investigations (ICE HSI), and the St. Clair County Sheriff’s Department. This case was assigned to Assistant United States Attorney Randy G. Massey for prosecution.
Foreign National Pleads Guilty to Role in Drug Trafficking OrganizationRead the Press Release
Jesus Orlando Mendez-Velasquez, 33, a citizen of Mexico who most recently resided in Salt Lake City, Utah, entered a plea of guilty on April 11, 2013, to Conspiracy to Distribute and Possess With the Intent to Distribute Cocaine (Count 1), the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Mendez-Velasquez had been charged on August 22, 2012, in an eleven count indictment charging a total of ten individuals with being members of a large drug trafficking organization. Mendez-Velasquez is currently scheduled to be sentenced at 9:00 a.m., on January 13, 2014, at which time he faces a mandatory minimum sentence of twenty (20) years imprisonment up to a potential maximum sentence of life imprisonment, followed by a term of supervised release of not less than ten years, a $10,000,000 fine, and a $100 special assessment. Although he entered a guilty plea as to Count 1 of the Indictment, he persisted in his “not guilty” pleas as to Count 2 (Conspiracy to Distribute and Possess With the Intent to Distribute Methamphetamine) and Count 11 (Interstate Travel in Support of Racketeering) and is currently scheduled for trial on those counts on November 4, 2013. The Defendant is presumed innocent of those two counts because an indictment is only a formal charge against him. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt. The Defendant was given notice prior to his plea, that the United States intended to seek a Judicial Order of Removal, which would require his deportation following the service of any term of imprisonment.
According to the Stipulation of Facts which was filed with the Court at the time of the plea, Mendez-Velasquez was the leader of the organization charged in the Indictment, which was responsible for importing cocaine from Mexico into the United States, where it was eventually taken to Salt Lake City, Utah. From Salt Lake City, the cocaine was transported by members of the conspiracy to the St. Louis Metropolitan area where it was distributed by various members of the organization, including some who operated within the Southern District of Illinois. Proceeds for the sales of the cocaine were then transported back to the leaders of the conspiracy in Salt Lake City.
Of the nine individuals named in the indictment with Mendez-Velasquez, seven others have entered pleas of guilty; one other has been arrested and is awaiting trial; one is a fugitive. Those not yet convicted are presumed innocent for the reason set forth in the first paragraph, above.
Evidence in support of the indictment in this case was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Participating agencies include the Drug Enforcement Administration (DEA), Internal Revenue Service, Criminal Investigations, the U.S. Immigration and Customs Enforcement Office of Homeland Security Investigations (ICE HSI), U.S. Marshal Service, the Granite City Police Department, Fairview Heights Police Department, the Collinsville Police Department, the St. Louis Metropolitan Police Department, the St. Louis County (Missouri) Police Department, the St. Charles County (Missouri) Sheriff's Department, and the Nebraska State Patrol.
This case is assigned to Assistant United States Attorney Randy G. Massey for prosecution.
Thursday 10 October 2013
Wyoming Man Charged with Felony Child AbuseRead the Press Release
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced that on September 26, 2013, Robert Felter Jr., a 22-year-old Northern Arapaho Tribal Member, was charged in an Indictment with one count of felony child abuse in Indian Country, in violation of 18 U.S.C. § 1153 and W.S. § 6-2-503. The charge draws from an incident that occurred on June 20, 2013. Mr. Felter is facing a potential five (5) year term of imprisonment, and could be ordered to pay restitution, a fine, and special assessment. This case is being investigated by the Bureau of Indian Affairs with the assistance of the Federal Bureau of Investigation.
An Indictment is only an accusation. In every criminal case, the accused is presumed to be innocent until proven guilty, and the government always has the burden of proving guilt beyond a reasonable doubt.
Vallejo Woman Sentenced to 27 Months in Prison for Bankruptcy and Mortgage Fraud SchemeRead the Press Release
SAN JOSE, CA — Myra Holmes was sentenced on October 7, 2013 to 27 months’ imprisonment and ordered to pay over $196,000 in restitution on bankruptcy and mortgage fraud related changes, United States Attorney Melinda Haag announced.
Following a three-week trial, on March 19, 2013, a federal jury convicted Myra Holmes, 56, of Vallejo, California, of one count of U.S.C. § 152(5)-bankruptcy fraud/concealment of assets, one count of 18 U.S.C. § 1344-bank fraud, and three counts of 18 U.S.C. 1014-making a false statement to a bank. The jury acquitted Holmes on two other false statement counts. Evidence at trial showed that Holmes enriched herself by knowingly receiving from her father his half-interest in a Vallejo residence in which she lived. Holmes knew at the time she received this property that her father had previously declared bankruptcy and that, as a result, his half-interest in the Vallejo property now belonged to his Chapter 7 bankruptcy estate. Holmes took this half-interest in the Vallejo property without paying anything to the bankruptcy estate and also without notifying or obtaining the permission of the United States Bankruptcy Court or the bankruptcy trustee. After Holmes received her father’s half-interest in the Vallejo property, she drained the equity from the property through a fraudulent refinancing mortgage loan application. The jury found that Holmes falsely told World Savings Bank in her refinancing mortgage applications: (1) that she earned $15,000 a month; (2) that she had a bank account balance of $15,000; and (3) that she was not a party to a lawsuit. Evidence at trial showed that Holmes knew at the time she filed her refinancing mortgage applications that she was overstating her monthly income and account balance and also knew that the bankruptcy trustee had recently filed a lawsuit against her seeking to recover the bankruptcy estate’s half-interest in the Vallejo property.
As a result of her bankruptcy fraud and mortgage fraud, Holmes received approximately $147,000 directly and arranged for personal debts to be paid (including her debts to Neiman Marcus, Lord & Taylor, Macy’s, and Spiegel). By the end of April 2006, Holmes had spent on personal expenses (including gambling and shopping) all of the approximately $147,000 that she had fraudulently received as a result of the November 2005 refinancing of the Vallejo property. To date, Holmes has not repaid the bankruptcy estate for the funds she took out of the Vallejo property in the November 2005 refinancing.
The Honorable Edward J. Davila, United States District Court Judge, handed down the 27-month sentence. Judge Davila also ordered Holmes to pay over $196,000 in restitution and to serve a three-year term of supervised release. Judge Davila denied Holmes' motion for bail pending appeal and ordered her to self-surrender by January 7, 2014 to begin serving her sentence.
Assistant U.S. Attorney Joseph Fazioli prosecuted the case with the assistance of Lakisha Holliman and Laurie Worthen. This prosecution is the result of a multi-year investigation by the Federal Bureau of Investigation.
(Holmes second superseding indictment )
U.S. Attorney's Office in Second Week of FurloughRead the Press Release
LAFAYETTE/SHREVEPORT/MONROE/ALEXANDRIA/LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that operations of the Office of the U.S. Attorney for the Western District of Louisiana, all divisions - Lafayette, Shreveport, Monroe, Alexandria and Lake Charles continue to suffer from the effects of the partial shutdown that started at midnight on October 1, 2013.
The office as a whole is operating with 54 percent of its original staff. Most civil litigation has stopped. Because of the partial shutdown, the majority of the office’s staff working on civil litigation continues to be furloughed. The few remaining employees in the Civil Division have been left to monitor hundreds of civil matters to ensure the interests of the United States are protected. Administrative and criminal support staff have also been furloughed, but criminal litigation is ongoing, as these activities are deemed essential to the safety of human life and the protection of property. The U.S. Attorney’s Office continues to work with federal, state and local law enforcement on criminal matters.
Because of the effects of the appropriations lapse on activities of the U.S. Department of Justice, the U.S. Attorney’s Office has not been able to readily respond to media inquiries. Press releases are being limited to urgent matters involving public safety. The office’s website is not being actively updated during the shutdown. The district will continue to receive communications from the public via mail, email and/or telephone. For additional information concerning the effects of the appropriations lapse and partial shutdown, visit www.justice.gov/jmd/publications/doj-contingency-plan.pdf or www.justice.gov/usao/law.
Twelve Men Charged with Alien Smuggling in the Florida KeysRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Rear Admiral John H. Korn, Commander, 7th Coast Guard District, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office, announce the indictment of twelve defendants for their alleged participation in the smuggling of Cubans to the United States.
Two indictments, with a combined 126 counts, charge the defendants with conspiracy to encourage and induce aliens to enter the United States, in violation of Title 8, United States Code, Section 1324(a)(1)(A)(v)(I); encouraging and inducing aliens to enter the United States, in violation of Title 8, United States Code, Section 1324(a)(1)(A)(iv); alien smuggling for private financial gain, in violation of Title 8, United States Code, Section 1324(a)(2)(B)(ii); bringing an aggravated felon into the United States, in violation of Title 8, United States Code, Section 1327; and illegal reentry into the United States by an aggravated felon, in violation of Title 8, United States Code, Section 1326(a) and (b)(2). The indictments charge the following twelve individuals:
Antonio Comin, 56, of Miami-Dade County
Arial Arias, 42, of Miami-Dade County
Severo Tapanes, 41, of Miami-Dade County
Jose Valdes Diaz, 37, of Miami-Dade County
Oreste Chavez Torres, 22, of Miami-Dade County
Alexander Aznay-Gonzalez, 23, of Miami-Dade County
Oylver Aguilar, 40 of Miami-Dade County
Juan Blanco, 20 of Miami Dade County
Rogelio Martin-Hernandez, 73, of Miami-Dade County
Eduardo Rodriguez, 42 of Miami-Dade County
Daniel Rochela, 42 of Monroe County
Mario Valdez, 53, of Monroe CountyAccording to the indictments, the defendants are alleged to have engaged in three separate ventures to smuggle a total of sixty-nine aliens. The indictments further allege that the smuggling of fifty of those aliens was for profit. Four defendants remain at large. The other defendants had their initial appearances before U.S. Magistrate Judge Lurana S. Snow in Key West, Florida.
If convicted, defendants Tapanes, Martin-Hernandez, and Rodriguez are facing a maximum possible sentence of twenty years in prison; defendants Arias, Valdes Diaz, Chavez Torres, Aznay-Gonzalez, Aguilar, and Blanco are facing a sentence of fifteen years in prison; and defendants Rochela and Valdez are facing a possible maximum sentence of ten years in prison. Defendant Comin is charged with 102 counts, including fifty counts of alien smuggling for profit, and could face a higher sentence.
Mr. Ferrer commended the investigative efforts of ICE-HSI and the U.S. Coast Guard. This case is being prosecuted by Special Assistant U.S. Attorney Kelly Blackburn.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Sentences for October 02 – 10, 2013Read the Press Release
Saul Hermosillo-Reyes, 25, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on October 10, 2013, for illegal re-entry of a previously deported alien into the United States. Hermosillo-Reyes was arrested in Casper, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Hector Lepe-Lepe, 25, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on October 10, 2013, for illegal re-entry of a previously deported alien into the United States. Lepe-Lepe was arrested in Gillette, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
George Ray Beebe, 63, of Aurora, Colorado, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 8, 2013, for theft of mail. He received three years of supervised release with special conditions and was ordered to pay a $100.00 special assessment. This case was investigated by the U.S. Postal Inspection Service.
Rene Martinez-Mejia, 39, of Guatemala, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 8, 2013, for illegal re-entry of a previously deported alien into the United States. Martinez-Mejia was arrested in Casper, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Michael W. Lubenow, 53, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 7, 2013, for production of child pornography. Lubenow was arrested in Casper, Wyoming. He received 264 months imprisonment, to be followed by a life time of supervised release, and was ordered to pay a $100.00 special assessment, a $1,000.00 fine and restitution in the amount of $895.79. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Melinda Kathleen Jervah, 52, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 7, 2013, for production of child pornography. Jervah was arrested in Casper, Wyoming. She received 180 months imprisonment, to be followed by a life time of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $895.79. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Timothy M. Palmer, 41, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 7, 2013, for conspiracy to possess with intent to distribute, and to distributing 200-350 grams of methamphetamine. Palmer was arrested in Cheyenne, Wyoming. He received 60 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Jeffery Allen Johnson, 30, of Gillette, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on October 2, 2013, for possession with intent to distribute methamphetamine and aiding and abetting. Johnson was arrested in Natrona County, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the Wyoming Highway Patrol and the Wyoming Division of Criminal Investigation.
Jackson SentencingRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Walt Green announced that LINDA M. JACKSON, age 51, of Plaquemine, Louisiana, was sentenced today by Chief U.S. District Judge Brian A. Jackson to serve sixty (60) months in federal prison for her role in a two-year health care fraud scheme that she perpetrated in the Baton Rouge area.
JACKSON previously pled guilty, on February 28, 2012, to a conspiracy to commit health care fraud. In her plea agreement, the defendant had admitted that she worked with others to defraud the Medicare program over a two-year period of time, from April 2007 through April 2009. During her scheme, JACKSON operated a company in Plaquemine, Louisiana called A&A Durable Medical Supply (“A&A”), and used the company to submit numerous false reimbursement claims to Medicare for items that JACKSON had never provided. JACKSON also admitted that she furthered the scheme by preparing and completing false documents, such as delivery tickets and physician order forms, and by directing other A&A employees to prepare similar false documents. Through her false claims, JACKSON attempted to obtain more than $2.2 million from Medicare.
At this morning’s sentencing, in addition to being sentenced to serve 60 months in prison, LINDA JACKSON was ordered to pay restitution in the amount of approximately $297,523. She was ordered to serve a two-year term of supervised release following her release from imprisonment. She will also be ordered to forfeit an additional $297,523 in proceeds from her health care fraud scheme. At the conclusion of the sentencing, the Court ordered JACKSON to begin serving her sentence immediately and remanded JACKSON to the custody of the United States Marshal.
Other defendants convicted and sentenced as a result of the investigation into A&A Durable Medical Supply include UNIECESCO SMITH and EUNICE SPARROW, both of Plaquemine, Louisiana, who were sentenced in June 2012 to serve federal prison terms of 14 months and 12 months and 1 day, respectively, for their roles in this health care fraud scheme.
Acting United States Attorney Walt Green stated, “This is another in a long line of successful prosecutions – and lengthy prison sentences – for health care fraud in our district. This office remains committed to protecting the integrity of our health care system, and we will continue to work with our federal and state law enforcement partners to enforce the federal health care laws. This sentence should serve as a deterrent for others who would attempt to defraud Medicare for their own personal greed.”
“Today’s 60-month sentence places greedy Medicare providers on notice,” said Special Agent–in-Charge Mike Fields, United States Department of Health and Human Services, Office of Inspector General, Office of Investigations, Dallas Regional Office. “Our special agents and their law enforcement partners will vigorously investigate health care providers who cheat and loot the Medicare Trust Fund.”
The investigation of this matter was conducted by the U.S. Department of Health and Human Services’ Office of Inspector General, the Federal Bureau of Investigation, and the Louisiana Attorney General’s Office, with valuable assistance from the Social Security Administration’s Office of Inspector General. The case was prosecuted by Assistant United States Attorneys Alan Stevens and Chris Dippel. The case was brought as part of the Medicare Fraud Strike Force, supervised by the U.S. Attorney’s Office for the Middle District of Louisiana and the Criminal Division’s Fraud Section.
Georgia Woman Pleads Guilty to Conspiracy to Commit Wire Fraud Related to Transportation Scheme at Local Military BaseRead the Press Release
WASHINGTON – A former employee of an Albany, Georgia transportation company has pleaded guilty to conspiracy to commit wire fraud related to a scheme to overcharge the Department of Defense (DOD) for transportation services rendered through the Defense Logistics Agency (DLA), resulting in the loss of millions of dollars to the United States government, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia.
Kelli Durham, 33, of Leesburg, GA, pleaded guilty today before U.S. District Judge W. Louis Sands in the Middle District of Georgia to one count of conspiracy to commit wire fraud.
During her guilty plea, Durham, a former employee of Company A, an Albany-based trucking company and freight transportation broker owned by Person A, admitted to participating in a scheme led by Person A to defraud the government by overbilling it for freight transportation services Company A falsely claimed to have provided to DLA at the Marine Corps Logistics Base (MCLB) in Albany, Georgia. Durham admitted that, at Person A’s direction, she took several steps intended to defraud the government and other trucking companies with which she brokered government freight, including altering shipping and equipment specifications stated on government bills of lading (GBL). DURHAM then used these falsified bills of lading to broker loads using shipping and equipment specifications inferior to those contracted for by DLA, while still billing DLA for the more expensive specifications it had requested. This led to massive over-billing of the government and losses in excess of $7 million.
According to court documents, Company A handled thousands of freight shipments for DLA from July 2008 to December 2012. Most of these shipments were designated as “exclusive-use,” a premium service requiring that the shipment be transported on a single truck, even if that prevented the truck from being filled to capacity. Each of these exclusive-use shipments was listed on a single GBL. Court documents also reflect that many of these shipments also required that a removable gooseneck (RGN) trailer be used to transport the freight. RGN trailers are not widely available and therefore are more expensive than other trailer types, such as a flatbed.
Durham admitted that Person A instructed her to use Photoshop to alter GBLs so that they listed freight from multiple shipments, rather than the single shipment as requisitioned by DLA. Person A also instructed Durham to use Photoshop to alter the equipment codes on the GBLs so that rather than require a RGN trailer, for instance, it appeared that DLA had requested a flatbed trailer. Durham admitted that she then brokered the shipments as reflected on the fraudulent GBLs to other trucking companies. At Person A’s direction, Durham then certified that the shipments were serviced as specified by DLA and billed the government according to the more expensive specifications on the authentic GBLs. In effect, Company A repeatedly billed the government for multiple expensive trucks, when in fact those multiple shipments were transported on only one less-expensive truck.
According to court documents, Company A was paid $37,944,823.88 for transportation services during the course of the scheme, of which between $7 million and $20 million represents a loss to the government in the form of services it paid for but did not receive. Durham admitted that she received approximately $905,685 as a result of the fraud scheme.
At sentencing, Durham faces a maximum penalty of 5 years in prison and a fine of not more than twice the pecuniary loss to the government. As part of her plea agreement with the United States, Durham has agreed to forfeit the $905,685 that she received as a result of the scheme, as well as to pay full restitution to the Department of Defense. She is also cooperating with the government’s investigation. Sentencing normally takes place in approximately sixty days following a plea of guilty.
This is the seventh guilty plea arising from a corruption probe centered at the MCLB in Albany. On May 8, 2013, Mitchell Potts, the former Traffic Office Supervisor for DLA, and Jeffrey Philpot, Potts’s former Lead Transportation Assistant, pleaded guilty to collectively accepting more than $700,000 in bribes from Person A in exchange for taking a variety of steps intended to direct DLA shipments to Company A. Among other things, Potts and Philpot admitted to “short loading” DLA shipments so that it would it appear that more trucks were necessary to service the shipments. They also admitted to requiring that the shipments be transported using RGN trailers regardless of whether that was actually necessary. As part of their plea agreements, Potts and Philpot are cooperating with the government’s investigation.
In June 2013, former base employee Michelle Rodriguez and local businessmen Thomas Cole and Fred Simon were sentenced to periods of imprisonment for their roles in a bribery scheme resulting in nearly $1 million in fraudulent overcharges to the government for military machine product orders. In February 2013, former base employee Shelby Janes pleaded guilty to accepting bribes from Person A in exchange for aiding him in the theft of more than $1 million worth of heavy equipment from the base.
The case is being investigated by the Naval Criminal Investigative Service, with assistance from the Dougherty County District Attorney’s Office Economic Crime Unit, Defense Criminal Investigative Service, DLA Office of the Inspector General, and the Department of Labor Office of the Inspector General. The case is being prosecuted by Trial Attorneys Richard B. Evans and J.P. Cooney of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia.
Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney's Office, at (478) 621-2603.
Gang Indictment Unsealed Charging Seven Defendants from the East Hollygrove Neighborhood with Federal Murder, Drug, and Firearms ViolationsRead the Press Release
Yesterday, the United States Attorney’s Office unsealed another gang indictment which was returned by the Federal Grand Jury on Friday October 4, 2013 and placed under seal. This Second Superseding Indictment charges seven members of the East Hollygrove neighborhood with 25 counts of violations of the Federal Controlled Substances Act, the Federal Gun Control Act, and murder, announced U. S. Attorney Kenneth Allen Polite, Jr.
CHARLES JOHNSON, aka “Chuck”, 25; ROBERT JOHNSON, aka “Skinny”, 24; THOMAS HENDERSON, aka “T”, 24; LAVELL STOVAL, aka “Vell”, 21; WILLIAM HENDERSON, aka “Will”, 20; ERSKINE WATERS, 22; and AVIAN BRULE, aka “Ave”, 20; all from New Orleans, were charged in this case. All of the defendants are charged with conspiracy to distribute one kilogram or more of heroin and a quantity of cocaine base. Each defendant faces a minimum sentence of 10 years to life in prison, a fine of not more than $10,000,000, and a minimum of five years of supervised release.
All of the defendants are also charged with using firearms in furtherance of drug trafficking crimes. Each faces up to 20 years in prison, a fine of $250,000, and three years of supervised release.
In addition to the first two charges, the following defendants face additional charges outlined below:
CHARLES JOHNSON is charged in Count 3 with participating in the murder of Ms. Eula Mae Ivey on June 14, 2010 as a result of a drive by shooting. Three other gang members have already pled guilty to participating in this murder in federal court. If convicted of this count, CHARLES JOHNSON faces a sentence of up to life in prison or the death penalty. CHARLES JOHNSON is also charged in Counts 6, 10, and 11 with distribution of heroin. He faces a sentence of not more than 20 years in prison, $1,000,000 fine and at least 3 years of supervised release, for each of these counts. Additionally, CHARLES JOHNSON is charged in Count 7 with possession of a firearm in furtherance of a drug trafficking crime for which he faces a minimum sentence of 5 years to a maximum of life imprisonment, $250,000, and 5 years of supervised release. Finally, he is charged in Count 8 with being a felon in possession of a firearm for which he faces not more than 10 years in prison, a fine of $250,000, and three years of supervised release.
THOMAS HENDERSON is charged in Count 4 with possession with the intent to distribute 28 grams or more of cocaine base. If convicted he faces a minimum of 5 years to a maximum of 40 years in prison, $5,000,000 and at least 4 years of supervised release. HENDERSON is also charged in Counts 17, 18, 19, and 20 with distribution of heroin. For each count he faces a sentence of up to 20 years in prison, $1,000,000 fine and at least 3 years of supervised release.
LAVELL STOVAL is charged in Count 5 with distribution of heroin for which he faces a sentence of up to 20 years in prison, $1,000,000 fine and at least 3 years of supervised release.
WILLIAM HENDERSON is also charged in Counts 12, 13, 14, 15, 16, 21, 22, 23, and 24 with distribution and possession with the intent to distribute heroin. He faces a sentence of up to 20 years in prison, $1,000,000 fine, and at least 3 years of supervised release, as to each count. He is also charged in Count 25 with possession of a firearm in furtherance of his drug trafficking activities for which he faces a minimum sentence of 5 years to a maximum sentence of life imprisonment, $250,000 fine, and 5 years of supervised release.
ERSKIN WATERS is charged in Count 9 with possession with the intent to distribute heroin. He faces a sentence of up to 20 years in prison, $1,000,000 fine and at least 3 years of supervised release.
AVIAN BRULE is charged in Counts 12 and 24 with distribution and possession with the intent to distribute heroin and faces a sentence of up to 20 years in prison, $1,000,000 fine and at least 3 years of supervised release, for each count. BRULE is also charged in Count 25 with possession of a firearm in furtherance of his drug trafficking activities for which he faces a minimum sentence of 5 years and a maximum sentence of life imprisonment, $250,000, and 5 years of supervised release.
U. S. Attorney Kenneth Allen Polite, Jr. noted that this was yet another example of how the federal effort is helping to attack and address the tide of violence that is occurring in New Orleans. Special Agents from the Federal Bureau of Investigation (F.B.I.) have been working on this case for several months as part of the NOPD led Multi-Agency Gang Unit (MAG UNIT) and have been steadfast in their resolve to bring these gang members justice.
This is just the latest in a series of gang related cases that the MAG UNIT has investigated over the past year. This Unit is focused on identifying and removing violent gangs from our neighborhoods. U.S. Attorney Polite wanted to personally thank the men and women of this special unit for their hard work and success.
U. S. Attorney Polite reiterated that the second superseding indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
This investigation was led by the Federal Bureau of Investigations as part of the MAG Unit and will be prosecuted by Assistant United States Attorney Maurice E. Landrieu, Jr.
(Download Indictment )
Former State Representative, Girod Jackson, Pleads Guilty to Federal Tax ViolationsRead the Press Release
Former Louisiana State Representative GIROD JACKSON, 41, pleaded guilty today in federal court before U.S. District Judge Jane Triche Milazzo to a three count Bill of Information, which charged him with violating provisions of the United States Tax Code, announced U.S. Attorney Kenneth Allen Polite, Jr. Specifically, JACKSON admitted his guilt to one count of Making a Fraudulent Statement on a Tax Return, a felony, and two counts of Willful Failure to File Tax Returns, misdemeanors.
According to court documents, JACKSON, who represented District 87, an area that includes portions of the West Bank of Jefferson Parish, admitted that he misrepresented on his federal tax return for 2006 the total income received by his company, Diversified Ventures, LLC. In 2007 and 2008, despite having earned sufficient income from Diversified Ventures and other sources and having filed requests for extensions of time to file his tax returns, JACKSON admitted that he failed to file any returns at all. JACKSON was elected to office in 2007 and served his first full year as State Representative for District 87 in 2008.
Upon sentencing, which is set for January 9, 2014, JACKSON faces the possibility of up to three years in prison and a $100,000 fine for Count 1 and up to one year in prison and a $25,000 fine for Counts 2 and 3.
The investigation was led by the Internal Revenue Service. Assistant United States Attorney Daniel Friel is prosecuting this case.
(Download Factual Basis )
Former Government Informant Sentenced to 30 Years in Drug Trafficking ConspiracyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), announce the conviction and sentencing of Honduran national Fausto Aguero Alvarado, 40. Aguero Alvarado was sentenced to 30 years in prison on drug trafficking conspiracy charges. Aguero Alvarado was arrested in Colombia in 2010 and was extradited to the United States in 2012. A jury convicted Aguero Alvarado following a July 2013 trial.
According to the evidence at trial, Aguero Alvarado had been a source for the Drug Enforcement Administration (DEA) from mid-2008 until early-2009. Following his deactivation as a source, Aguero Alvarado joined forces with the same individuals he had previously helped to target, and entered into a conspiracy to distribute multi-hundred kilo loads of cocaine from Colombia to Honduras. He introduced his co-conspirators to Colombian law enforcement officers who, posing as members of a foreign terrorist organization, sought to obtain weapons that they intended to use to launch attacks on the Colombian government. Aguero Alvarado helped to negotiate a deal to exchange multi-hundred kilogram loads of cocaine in exchange for rocket-propelled grenade launchers. Through Aguero Alvarado’s introductions, the Colombian law enforcement officers ultimately purchased several rocket-propelled grenade launchers, grenades, an Uzi submachine gun and ammunition.
The conviction of Aguero Alvarado is the result of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) led by ICE-HSI. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Mr. Ferrer commended the investigative efforts of ICE-HSI and DEA. The case was prosecuted by Assistant U.S. Attorney Adam Fels and Jerrob Duffy.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Armed Robber Targeting Taxi Cab and Food Delivery Drivers IndictedRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, announce that defendant Lionell Sanders (a/k/a “Pistol,” and “Briscoe”), 19, of Miami, Florida, was indicted by a federal grand jury on one count of conspiracy to commit armed robbery, in violation of Title 18, United States Code, Section 1951(a), four counts of armed robbery, in violation of Title 18, United States Code, Section 1951(a), and four counts of possessing and brandishing a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A)(ii).
The defendant is the alleged leader of a group targeting taxi cab and food delivery drivers in the Allapattah and Little Haiti neighborhoods of the City of Miami. The drivers were called out to the areas during the early morning hours, and accosted by the defendant and his coconspirators. The drivers were forced out of their vehicles at gunpoint, robbed, and often pistol-whipped.
Once the defendant realized that law enforcement was on his trail, he fled the area. Due to a multi-agency effort, the defendant was apprehended on September 27, 2013. The defendant is presently detained, pending trial. If convicted, he faces up to life in prison.
Mr. Ferrer commended the investigative efforts of ATF, the U.S. Marshal’s Service, the Miami-Dade Police Department, and the City of Miami Police Department. The case is being prosecuted by Assistant U.S. Attorney Vanessa Singh Johannes.
An indictment is only an accusation, and the defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Wednesday 9 October 2013
Yakima Man Sentenced to Twenty Years ImprisonmentRead the Press Release
Spokane – Today, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Kennith M. Henle, age 26, of Yakima, Washington, was sentenced today after having previously pleaded guilty on July 10, 2013 to Attempted Production of Child Pornography. Senior United States District Court Judge Edward F. Shea sentenced Kennith M. Henle to a twenty year term of imprisonment, to be followed by a life term of court supervision, after he is released from federal prison.
According to information disclosed during the court proceedings, in March 2012 a special agent with Homeland Security Investigations (HSI) accessed a photo hosting website and found a profile with an associated e-mail address that contained multiple photos of children of an inappropriate nature. HSI commenced investigation and obtained further information about the associated e-mail account, determining the account holder was Kennith Henle of Yakima, Washington.
On September 11, 2012, HSI Special Agents obtained a search warrant for Kennith Henle's e-mail account. The search resulted in the discovery of child pornography, which Henle had received over the internet. It also revealed child pornography produced by Henle in Moxee, Washington, of a minor left in his care. Special Agents, with the assistance of Yakima Police Department Detectives were able to interview Henle, who admitted the misconduct.
"It wasn't enough for Henle to abuse a child in his care, he shared his exploitation with predators around the world," said Brad Bench, Special Agent in Charge of HSI, Seattle Division, who oversees Eastern Washington investigations. "HSI places a high priority on combating this despicable crime, not only to identify and rescue child victims, but to stop their re-victimization by individuals who view and distribute Internet child pornography."
Michael C. Ormsby stated: "Prosecuting those who would produce and distribute pornographic images of vulnerable minors is a priority of the United States Attorney's Office for the Eastern District of Washington. This Office dedicates significant resources to the prosecution these cases and seeks appropriate punishment."
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources".
This investigation was conducted by Homeland Security Investigations.
CR-13-2046-EFS
Pittsburgh Man Conspired with Georgia Residents in Fraud SchemeRead the Press Release
PITTSBURGH – A Pittsburgh man has pleaded guilty in federal court to a charge of wire fraud conspiracy, United States Attorney David J. Hickton announced today.
Frank Smith, 69, pleaded guilty to count one before Nora Barry Fischer.
According to information presented to the Court at the guilty plea, Smith conspired with persons from Georgia to open bank accounts in Pittsburgh into which he deposited federal tax refunds obtained from false tax returns containing stolen identities.
Judge Fischer scheduled sentencing for March 5, 2014, at 9 a.m. The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service - Criminal Investigation conducted the investigation in this case. Frank Smith remains in custody of the USMS pending sentencing.
Lincoln Man Charged with Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that on October 9, 2013, an indictment was unsealed charging Jamie Eugene Tuggle, age 38 of Lincoln, with possession with the intent to distribute 5 grams or more of methamphetamine on June 30, 2013. The charge resulted from the execution of a search warrant at Tuggle’s Lincoln residence.
The possible penalty is not less than five years nor more than 40 years in prison and a fine of up to $5,000,000. Following any prison term, there would be a term of supervised release of not less than four years. The indictment also seeks forfeiture of $301 in cash to the United States. Tuggle is scheduled to make his first appearance in federal court on Tuesday, October 15, 2013.
The matter was investigated by the Lincoln/Lancaster County Narcotics Task Force, which includes officers of the Lincoln Police Department, the Lancaster County Sheriff=s Department, the Federal Bureau of Investigation, (FBI), and the University of Nebraska-Lincoln Police Department, and by the Nebraska State Patrol.
Cambria County Woman Admits Role in Large-scale Marijuana Distribution OrganizationRead the Press Release
JOHNSTOWN, Pa. - A resident of Carrolltown, Pa., pleaded guilty in federal court to a charge of conspiracy to distribute marijuana, United States Attorney David J. Hickton announced today.
Marguerite G. Lowmaster, 66, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that from March 2009 to May 9, 2011, Marguerite G. Lowmaster conspired to distribute and possess with intent to distribute at least 10 kilograms, but less than 20 kilograms, of marijuana. In addition, evidence presented to the Court at the time of Marguerite G. Lowmaster's guilty plea reflected that she conspired with George M. Lowmaster and others with the intent to facilitate and promote George M. Lowmaster's drug distribution organization.
Judge Gibson scheduled sentencing for Feb. 25, 2014, at 11 a.m. The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.Pending sentencing, the court continued Marguerite G. Lowmaster on bond.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
A joint task force, headed by the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, conducted the investigation that led to the prosecution of Marguerite G. Lowmaster. Other agencies participating on the task force include the Internal Revenue Service-Criminal Investigation; Pennsylvania State Police; the Pennsylvania Attorney General's Office; the Cambria County District Attorney's Office; the Carrolltown Police Department; the Patton Police Department; the Ebensburg Police Department; the Portage Police Department and the Paint Township Police Department.
Belleville ‘Sovereign Citizen’ Convicted of Making False Claims for Tax RefundsRead the Press Release
Destry Marcotte, 47, of Belleville, Illinois, was convicted of four counts of filing false claims for federal tax refunds following a two-day jury trial held in federal district court, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Following the jury’s verdict, Marcotte was taken into custody, to be held without bond, until his sentencing. Marcotte faces up to a total of twenty years in prison. Sentencing is scheduled for January 17, 2014. He has been detained awaiting sentencing.
Evidence at trial revealed that Marcotte had submitted to the IRS false claims for refunds of federal taxes over a period of years. These false refunds claimed a total amount that exceeded $600,000. Evidence showed that Marcotte claimed to be a sovereign citizen, thus he claimed to be not subject to the tax laws of the United States. In addition to filing false claims for federal income tax refunds, Marcotte did not pay federal income taxes due. At trial, proof showed that Marcotte was advised, prior to committing the charged conduct, that his claims and arguments were frivolous and could subject him to criminal prosecution.
The successful prosecution is the result of an investigation conducted by the Criminal Investigations Division of the Internal Revenue Service. The prosecution is being handled by Assistant United States Attorney Norman Smith.
Tuesday 8 October 2013
Walker Bill of InformationRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Walt Green announced today the filing of a Bill of Information charging GREGORY MARTIN WALKER, 46, formerly of Baton Rouge, Louisiana with one count of wire fraud in violation of Title 18, United States Code, Section 1343.
According to the Bill of Information, WALKER was engaged in the business of buying and selling of Louisiana motion picture investor tax credits. WALKER owned and operated The Bishop, LLC, an entity which purported to own film tax credits for resale to others. WALKER represented to purchasers that he owned tax credits for various film productions, including Universal Soldier IV, El Gringo, Mama I Want to Sing, and Transit.
The State of Louisiana, Department of Economic Development, Office of Entertainment Industry Development (“LDED”) administered the Louisiana Motion Picture Incentive Act. In order to develop and promote film productions, the State of Louisiana offered tax credits for the production of movies within the State. Such tax credits can be used to pay the Louisiana income taxes of the film production companies, redeemed by the film production companies for a discounted price at the Louisiana Department of Revenue (“LDR”), or even sold to others who could use the tax credits to pay their Louisiana income tax liabilities. LDR was vested with the authority to disallow tax credits if the transferor of tax credits did not have rights to claim or use the tax credits at the time of their purported transfer.
Strategies for Investment, LLC (“SFI”) was a Baton Rouge business owned and operated by a local Certified Public Accountant (“CPA”). WALKER and The Bishop sold tax credits to SFI, which re-sold said credits to tax clients of the CPA. WALKER and The Bishop represented that they owned and controlled the tax credits which they sold to SFI.
From November 2011 through July 2012, WALKER marketed tax credits to the CPA who owned and operated SFI. From August 2011 through January 2013, WALKER also sold tax credits to other Louisiana taxpayers who sought tax credits to pay their Louisiana income tax liabilities.
Beginning in August, 2011, and continuing through in or about January, 2013, WALKER devised and executed a scheme to defraud purchasers of Louisiana film tax credits. WALKER falsely represented to purchasers that he owned certain tax credits, when in fact, he neither owned nor controlled such film tax credits. In order to carry out his scheme to defraud, WALKER forged the signatures of various individuals on tax credit purchase agreements and used interstate wires to complete his scheme.
WALKER sold purported tax credits to SFI on approximately 11 occasions between January 3, 2012 and June 20, 2012. SFI paid WALKER and The Bishop approximately $971,418 for the purchase of tax credits purporting to have a face value of $1,456,926. WALKER used the funds obtained through his scheme for his personal enrichment.
As a result of his scheme to defraud, WALKER stands charged with one count of wire fraud. If convicted of a violation of Title 18, United States Code, Section 1343 carries a maximum term of 20 years imprisonment, a fine of up to $250,000, and a term of 3 years supervised release. The Bill of Information also notifies WALKER that he is subject to the forfeiture of all property, real or personal, which constitutes, or is derived from proceeds traceable to his wire fraud including, but not limited to at least $971,418, said amount being the proceeds obtained through the violation of Title 18, United States Code, Section 1343.
This matter was jointly investigated by the Federal Bureau of Investigation, the Louisiana Inspector General’s Office, and the United States Grand Jury for the Middle District of Louisiana. The case is being prosecuted by Assistant United States Attorney Rene I. Salomon. Additional assistance was provided by the Louisiana Department of Economic Development.
Acting United States Attorney Green stated, “We will continue to safeguard all types economic programs that fall prey to fraudsters and ensure they are held accountable for their actions.”
FBI Special Agent-in-Charge Michael Anderson stated, “This conviction should convey a clear message to the public that schemes to defraud that interfere with legitimate government incentives to stimulate economic growth in Louisiana will not be tolerated.”
Louisiana Inspector General Stephen Street commented, “This sort of blatant fraud undermines the entire tax credit program and cannot be tolerated. We will continue working with the FBI and United States Attorney to make sure that those who engage in this sort of corruption face criminal consequences.”
NOTE: A Bill of Information is a determination that probable cause exists to believe that offenses have been committed by a defendant. The defendant is presumed innocent until and unless proven guilty at trial.
Utilities Workers Union Officials Charges with Conspiracy, EmbezzlementRead the Press Release
PITTSBURGH – Two union officials have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy and union embezzlement, United States Attorney David J. Hickton announced today.
The three-count indictment named John Vetterly, Jr., 52, of Pittsburgh, Pa., and John Baranski, 53, of Boardman, Ohio, as defendants.
According to the indictment, Vetterly, a President of the Utilities Workers Union of America AFL-CIO Local 475 (Local 475), and Baranski, a Secretary-Treasurer of Local 475, conspired to embezzle and embezzled approximately $30,852.30 from the union by writing and cashing unauthorized union checks during the period from February 2006 to December 2008.
The law provides for a maximum total sentence of 15 years in prison, a fine of $750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The Department of Labor, Office of Labor-Management Standards conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
US Marshal Assaulted by Philadelphia Man During ArrestRead the Press Release
ERIE, Pa. - A former resident of Philadelphia, Pennsylvania, pleaded guilty in federal court to a charge of assaulting a federal officer, United States Attorney David J. Hickton announced today.
Ryan Bell, 26, pleaded guilty to one count before Senior United States District Judge Maurice B. Cohill, Jr.
In connection with the guilty plea, the court was advised that on January 15, 2013, Bell assaulted a Special Deputy United States Marshal, a member of the U.S. Marshal’s Western Pennsylvania Task force, who was engaged in official duties as the task force was executing an arrest warrant against Bell.
Judge Cohill scheduled sentencing for January 21, 2014 at 11:00 a.m. The law provides for a total sentence of twenty years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Pending sentencing, the court continued Bell on bond.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The United States Marshal’s Service conducted the investigation that led to the prosecution of Bell.
Tampa Bail Bondsman Sentenced to More Than 8 Years in Prison for Tax Fraud and Identity Theft SchemeRead the Press Release
Tampa, FL – U.S. District Judge Susan C. Bucklew today sentenced Freddie Wilson to 8 years and 6 months in federal prison for theft of government funds, aggravated identity theft, money laundering, and obstruction of justice. The court also ordered Wilson to forfeit a 2011 Chevrolet Camaro and approximately $8,700, which are traceable to proceeds of the offenses, and entered a money judgment against him in the amount of $39,197.72.
Wilson was found guilty by a jury on July 11, 2013.
According to court documents, Wilson was a licensed bail bondsman who ran Against All Odds Bail Bonds, Inc. in Tampa. In June 2012, Wilson opened an account in the name of Against All Odds, at a local bank, under the guise that he was a check casher. Within a three month period, he deposited over $318,000 in U.S. Treasury income tax refund checks that were issued as a result of fraudulently filed federal income tax returns. Wilson used the identities of deceased, elderly, and disabled victims to deposit the checks. Wilson spent all of the money on personal expenses, including the purchase of the 2011 Camaro, mortgage payments, expensive restaurants, hotels, and large dollar transactions at a casino.
In January 2013, a federal search warrant was executed at Against All Odds Bail Bonds, and agents seized the Camaro and approximately $8,600 that remained in a bank account from the fraudulent tax refunds. Wilson subsequently obstructed the criminal investigation by taking records that were seized during the search warrant and failing to return them to the government.
This case was investigated by the Internal Revenue Service - Criminal Investigation. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
Postal Employee Charged with Stealing from Greeting CardsRead the Press Release
PITTSBURGH - A Shaler Township woman has been indicted by a federal grand jury on charges of theft of mail by postal employee, United States Attorney David J. Hickton announced today.
The two-count indictment named Tse Guin Vogtsberger, 55, as sole defendant.
According to the indictment, Vogtsberger, being an employee of the United States Postal Service, did steal, abstract and remove from a greeting card on two separate occasions an article or thing contained therein, that is cash and/or two gift cards.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The United States Postal Inspection Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Man on Pretrial Release for Drug Offense Charged with Selling Drug ParaphernaliaRead the Press Release
PITTSBURGH – An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on charges of criminal contempt and selling and offering for sale drug paraphernalia, United States Attorney David J. Hickton announced today.
The four-count indictment named Mayank Mishra, 32, as the sole defendant.
According to the indictment, in and around September of 2013, Mishra violated the order setting forth the conditions of release that was issued by the Honorable Maureen Kelly, United States Magistrate Judge. This order was issued on Feb. 26, 2013, in relation to Mishra's previous charge at Criminal No. 12-135M. The conditions of release that Mishra violated related to the prohibition against violating any federal or state law; the indictment alleges that while on pretrial release, Mishra sold and offered for sale drug paraphernalia. The indictment also charges that from in and around December of 2011, to in and around March of 2012, and from in and around February of 2013, to in and around September 2013, Mishra sold drug paraphernalia, including various substances used to dilute heroin and glassine bags used in the sale of heroin.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Greater Pittsburgh Safe Streets Task Force consisting of Pittsburgh Bureau of Police, Allegheny County Sheriff's Office, Wilkinsburg Police Department, Allegheny County Police Dept., Oakdale Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the Federal Bureau of Investigation conducted the investigation leading to the superseding indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.